New York Notice of Contest of Lien

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Multi-State
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US-01050BG
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Description

This form is a sample of a notice contesting a lien that has been recorded in the office of the appropriate county official.This form is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

New York Lien Law § 34 provides that any contract, agreement or understanding waiving a right to file or enforce any lien is void as against public policy and wholly unenforceable.

No, New York does not require or provide statutory forms for lien waivers. Because the form and content of lien waivers aren't regulated under New York's Lien Laws, careful attention should be given to the actual terms of the waiver to ensure you're not waiving more than intended. See: Should You Sign That Lien Waiver?

A lien may be discharged in litigation through a motion to dismiss, a motion for summary judgment, or at trial. Lien Law § 39, discussed above, provides one basis for discharge in litigation. A lien may also be discharged if it is proved that the lienor was not owed any payment.

New York Lien Law § 19(4) allows a lien to be discharge by filing a bond securing up to 110% of the amount claimed. A mechanic's lien discharge bond is executed by the principal, which requests the bond, and the surety, a financial services company which guarantees payment if the lien claim is proved.

This notice authorizes the Department of Motor Vehicles to disclose (or otherwise make available) information about the lienholder obtained by the department in connection with this record.

Pursuant to New York Lien Law § 3, an unpaid contractor, laborer, or materialman may file a mechanic's lien against privately owned real property for the value of the labor or material furnished. Mechanic's liens cannot be filed against publicly owned real property.

Pursuant to New York Lien Law Article 3-A, all funds received by a contractor for a construction project, or by an owner under a construction loan, constitute assets of a statutory trust. The recipient, as trustee must apply the funds to the costs of improvement before diverting them to any other purpose.

New York Lien Law § 34 provides that any contract, agreement or understanding waiving a right to file or enforce any lien is void as against public policy and wholly unenforceable.

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New York Notice of Contest of Lien